Life Insurance Guide

Term, whole life, endowment, money back, ULIPs, child and retirement plans — what each one is actually for.

Life insurance covers one risk: your income stopping because you are no longer there. Every product in the category is a variation on how that protection is packaged, and how much saving is bundled alongside it.

The main product types

Term insurance is pure protection — the largest cover for the smallest premium, with no maturity value. Whole life extends cover across your entire lifetime. Endowment and money back plans combine modest savings with protection. ULIPs link the savings component to market funds. Child plans add a premium waiver so an education stays funded. Retirement plans convert a corpus into income.

Riders worth understanding

Accidental death, permanent disability, critical illness and waiver of premium riders attach to a base policy at low cost. A disability rider in particular deserves attention, because losing the ability to earn is more likely than dying during your working years.

How to decide

Establish the required cover first — typically ten to fifteen times annual income, adjusted for liabilities and dependants — then choose the structure. Doing it the other way round is how people end up with six small policies and no adequate one.

Information on this website is educational and advisory in nature. Insurance products, benefits, exclusions, waiting periods and claim outcomes are subject to the terms and conditions of the respective insurer's policy document and applicable IRDAI regulations. Please read the policy wording carefully before concluding a sale.

Share this article
Financial Analysis